LEADERSHIP RESOURCES BLOG

Guidance on leadership development & strategic planning.

How to Create a Living Strategic Succession Plan

By Leadership Resources 09/16/2019
Chess move as symbol of great strategic planning and choices

The business world rewards both careful planning and spontaneous action. At the same time, conventional wisdom warns against both of these extremes. All of this seems contradictory. How is it that caution and risk both work to our benefit and our detriment? And how can we know which path to take?

Perhaps the solution to this conundrum lies in the balance. Planning or acting on impulse isn’t inherently good or bad, but going too far in one direction can leave you vulnerable. When it comes to promoting employees or shifting leadership roles, you need a system that integrates strategic oversight while also embracing the dynamics of your company’s landscape.

Check Out How to Create a Living Strategic Succession Plan

Focus on the Big Picture

When developing a succession plan, it’s always good to start with the big picture in mind. What’s involved in this picture? Things like your vision, mission, various long-term goals, culture, and areas of your company you wish to maintain, do away with, or improve. With this broad view in mind, you can begin to formulate the types of roles, duties, and leadership qualities required to ensure your business’ continued success. This will help you begin to target those within your organization who might be a good fit for various roles.

Help Your People Grow

No matter how developed or limited your succession plan is, one thing remains constant: you will need good leaders to take over vital roles in your company. And good leaders don’t just fall from the sky; they must be developed and prepared to take on your company’s needs. Your living, breathing succession planning model should focus prominently on leadership training so your people are prepared to take on whatever sudden challenges might arise.

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Respond to the Data

Nothing is set in stone, and your succession plan shouldn’t be either. As you work on developing leaders within your organization, you might find that your regiment isn’t as effective or practical as you had hoped. Perhaps your training is too broad or too narrow. Maybe you’re not giving the right people the right amount of attention. Whatever the case may be, pay attention to how your programs are performing. If they’re not doing well, you must adjust your succession planning strategy accordingly. This might involve bringing in different coaches, hiring new recruits, or outsourcing some of your leadership training programs.

Anticipate Changes

The most important part of ensuring a flexible and effective succession plan is to always keep Murphy’s Law in mind: anything can happen, good or bad. Work with your succession planning team to envision “What If?” scenarios that capture possible changes in your industry, company, or leadership. You don’t want to become paranoid, of course, but the more aware you are of life’s uncertainties, the better prepared you’ll be to make necessary sudden changes with tact. In short, keep calm but look ahead.

Make Routine Updates

Finally, it’s not enough to merely anticipate potential changes. You must also react to the current moment, including any recent changes in your company culture, outlook, outcome, etc. To keep your succession plan alive and well, and to stay on top of these changes, revise it once a quarter or more. What has changed in those few months? What’s working? What’s not? And what will set up your organization for success in the short-term and the long-term?

Opportunity lies somewhere between chaos and order. Your succession plan should be thorough and strong, but also elastic enough to adapt to changes in your organization and the world at large. By finding this balance, you can maintain a steady flow of competent leaders who will bring your business into a bright future.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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Succession Planning: Promoting Team Unity Under New Leadership

By Leadership Resources 08/14/2019
Leadership success, hands with red hearth

Businesses that stand the test of time will eventually face the proverbial passing of the torch. Those who have lead the organization for a long time and wish to move on to retirement or other ventures must find the proper candidate to take over their role. This transfer of leadership roles is known as succession. And while succession implies a continuation of the company, it also implies change, which can frighten staff members, especially those directly under the wing of the leader who is leaving.

Current and upcoming leaders must find ways to unite their teams in order to calm these fears and prepare for these changes. Proper succession planning shouldn’t just fill vacant roles with the right people, then, but also put everyone within the organization on the same page. Here we’ll examine a few key ways to promote team unity under new leadership.

How to Promote Team Unity as a New Leader

Reinstate Vision

Every leader, even if they’re occupying the same role at different times, has their own unique leadership style and idiosyncrasies that inform their decision-making. However, above all else, leaders should serve the needs of their organization and their people. This means, regardless of their personal traits, leaders must always keep the company’s greater vision in mind. Under the supervision of their leaders, team members must also work toward this common purpose.

In other words, the company’s vision supersedes the leader and the team, operating as a unifying force in and of itself. No matter who is currently at the helm, the ship is headed in the direction of this vision. By reinforcing and adhering to the company’s vision, new leaders can promote and maintain team unity and the overall organizational culture.

Transition Gradually

Even the most open-minded people struggle with change, especially when it’s abrupt. Among the several benefits of succession planning, the buffer it creates between the old and the new is perhaps the most important. Team members should have the opportunity to get to know their newly appointed leader over a period of time in order to get comfortable with this shift.

Fortunately, it’s likely that most staff members will already know this person, as many succession plans promote someone already within the organization. That said, the change in roles can still throw people for a loop, so the more time everyone has to get used to the new situation, the better. It benefits both the new leader and the team to have several weeks (if possible) where the current leader and upcoming leader work side by side.

Create Team Buy-In

Whenever a new idea comes about, creating team buy-in is a major step in furthering its development. The same goes for a change in leadership. While in most cases the team itself won’t have a say in succession planning issues, they should at least be allowed to offer feedback and advice to their upcoming leader. By empowering the team in this way, individuals within the team will feel more connected to one another, establishing unity and trust.

Change is difficult, but it’s necessary for a business to go on, thrive, and adapt to a dynamic world. During a shift in leadership, however, the current team might begin to fracture and waver. This is why every succession planning model should include measures for promoting team unity during this transition. For deeper insights into succession planning and how to keep your company together during a leadership transfer, download our white paper: “Preparing New Leadership: A Successful  Approach to Succession Planning.”

Download A Whitepaper On Succession Planning

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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Can You Terminate Employees Without Crushing Morale?

By Leadership Resources 05/03/2019
Leadership Resources termination document

In a constantly evolving business climate, it is more important than ever to make sure work teams are cohesive, high performing, and agile. A strong culture of strategic leadership and values based hiring processes can serve to create high functioning teams. However, sometimes even the most promising hires turn out to be the wrong fit. After efforts to coach, develop, and train an employee fail, it sometimes becomes apparent that they are negatively impacting your business’ growth, reputation, and/or team morale.

It is almost inevitable that a leader will eventually face the difficult decision to terminate an employee. Firing a staff member can lead to serious leadership stress, which can trickle down to the rest of the organization, causing disengagement, confusion, and discontent. Is it possible, then, to terminate employees without crushing morale? In short, yes, but it takes some effort.  

How to Terminate an Employee and Maintain Morale

Transparency after Termination

A team member who is either underperforming or a bad fit has significant impact on the morale and energy of their coworkers. If you’re responsible for managing team dynamics, you have to bear in mind that even when a termination is necessary to improve working conditions, some employees may still panic at this revelation, thinking they could be next. It’s your job to articulate a clear leadership message before concern spreads. Your communication should reinforce critical company values, and how the team will move forward, without divulging so much information that you put the organization or yourself at risk.

Be thoughtful prior to sending any message to the rest of the team. Be as transparent as you legally and reasonably can. While you shouldn’t share health or sensitive personnel information, the more your team knows, the better they’ll understand what they’re doing right and where they can improve. Clearly lay out the reasons for the change through the lens of mission, vision, and values, and provide opportunities to discuss matters further with individual team members privately, if necessary.  Don’t dwell on specific performance issues beyond this point. This is the time to clear things up, tie any loose ends, and forge a positive path forward with the current team.

Framing is Key

It isn’t just about what you tell your team, but how you tell them. Framing the situation the right way can turn a sour scenario into something beneficial for the workplace culture. The key here is to focus less on the negatives and more on the positives. Don’t ignore the truth of the termination, of course. Instead, leverage this disruption as an opportunity to bring your team back together.

For instance, if an employee was terminated due to a bad attitude or inappropriate behavior, conduct a meeting with your team to reinforce the company’s culture and values. Remind everyone what types of behavior are acceptable and encouraged, and which are discouraged, and point out recent instances where employees did an outstanding job. Bring the focus back to the collective vision, and clearly state what actions are being taken to reinforce this vision and move the company forward.

Terminating a Negative Force Can Actually Boost Morale

In addition to the above, it’s also important to remember that terminating an employee is in the organization’s and the team’s best interest. After all, the decision to remove an employee from the company comes from a careful performance management review process where it becomes clear that the employee is not a cultural match for the organization and may be harming the business in some significant way.  If you have been clear in communicating your core company values, the termination should not come as a surprise to the employee, and it’s likely that the employee’s negative performance or attitude manifested in many forms, such as lowered productivity, violation of company policies, or negatively impacting morale. Purposeful action to preserve and uphold your stated values can serve to increase individual accountability and foster greater teamwork.

While this change in numbers might be abrupt for some, it should ultimately make for a better work environment. In this way, firing an employee should actually serve to boost morale rather than crush it. It might take a while for this shift to occur, of course. But with proper framing and clarity in communication, your team can see a positive change come out of this decision.

Of all the responsibilities a leader must take on, having to terminate an employee might cause the most stress. Many seasoned managers still admit to agonizing over even the most justified cases of termination. Still, it’s necessary for maintaining a positive company culture and promoting growth of the organization. Be open and honest with your team and continue focusing on the good.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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How Coaching Impacts Your Bottom Line

By Leadership Resources 05/01/2019
Leadership Resources two men doing business coaching

The most successful organizations understand that their growth largely depends on their people and culture. Staff members must feel encouraged and empowered to go above and beyond the bare minimum that’s required of them each day.

Coaching and leadership go hand in hand. The best leaders make coaching a part of their job, helping employees grow as individuals and members of a team, while also utilizing a coach themselves. In fact, good coaching can have a tangible impact on a company’s bottom line. Here’s how.

The Benefits of Leadership Coaching on Your Bottom Line

Retaining Good People

Business leaders must focus on hiring the best, most fitting candidates for their enterprise. However, welcoming a new hire aboard doesn’t matter much if that person abandons ship. In fact, high turnover rates can wind up greatly costing a business. According to a 2012 study by the Center for American Progress, replacing a highly-trained or skilled employee can cost a company approximately twice as much of their annual salary. In other words, it’s not just about finding the right people, but retaining them.

One of the best ways to keep employees on board is by injecting a company culture with a strong emphasis on developing people, with coaching being an important part of that. Good coaches treat staff members as equals, encouraging them to take on new responsibilities that reinforce their purpose and importance in the company. As these employees learn and grow, they will provide more value and maybe even become coaches to new employees. More people will choose to stay in this mutually respectful, upwardly mobile, and positive environment.

Keeping Employees Engaged

It isn’t enough to simply keep employees around, however. Keeping them engaged is vital to improving a company’s bottom line, too. Team members who are actively invested in their work are more productive and positive, and less prone to costly accidents and mistakes than those who are mentally checked out on the job.

Coaches help keep employees engaged in several ways. First, they remind employees why their role matters. Additionally, coaches can forge a clear development path for employees to follow. If staff members want to contribute more, their coach can help them work towards achieving that. Leadership coaching in particular prepares employees to take on larger leadership roles in the company.

Improving Company Culture

Coaching and leadership development ultimately improve a company’s culture across the board, which yields net positive effects both internally and externally. Inside the organization, a positive culture spreads contagiously from employee to employee, naturally boosting productivity and engagement. From the outside, consumers and clients take notice of this atmosphere, which will gravitate them towards it. In this way, a brand’s culture and values and reputation are inextricably linked.

Great coaches work hard to maintain these values by reinforcing them in their actions, discussions, and lessons. By demonstrating what strong leadership looks like, coaches provide an example that their team can follow as they learn and grow within the company. Businesses might also invest in an employee leadership development program, where employees can learn important skills and methods from leaders and coaches.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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Preparing the Next Leadership Team for Succession

By Leadership Resources 04/13/2019
Leadership Resources Preparing The Next Leadership Team for Succession

In the business world, you’ll find many passionate leaders who seem unlikely to ever leave the company. But our time here is limited, and life has a way of throwing curveballs at us whether we like them or not. It’s simply a fact that if you own a business, one day you and your fellow leaders will have to leave it, whether due to age, health concerns, or personal reasons. Of course, just because you’ll eventually exit the company doesn’t mean the enterprise should shut down too. If you want your business’ legacy to thrive, you’ll have to focus your efforts on succession planning.

What You Need to Know About Succession Planning

What is Succession Planning?

Right now, you may be asking yourself, “what is succession planning?” Simply put, succession planning is how a company secures its future by hiring, promoting, and/or training individuals to take on leadership roles as current leaders leave the enterprise. You might think of it as a ceremonial passing of the torch. As one team leaves, a new team steps in to carry on the business’ mission. Without proper succession planning, a business will struggle to continue its operation, as there will be no one available or remotely prepared to take on these vital leadership roles.

How Do Companies Develop Succession Plans?

The importance of succession planning should be abundantly clear. However, successfully crafting and implementing a succession planning strategy is a different story altogether. Every company differs in size, scope, location, and potential leadership candidates, meaning each organization must create a plan that suits its individual needs. Still, there are certain general guidelines every business should follow when forming a strategy for succession planning.

Start Early

The sooner you consider your exit strategy, the better. You won’t be shipping off tomorrow, of course, but by being ahead of the curve you can outline a plan for how to go about finding optimal replacements. This head start also allows you to start focusing on the leadership development of your current staff members. It takes time to identify the right candidates, let alone train and evaluate them thoroughly enough for the new role. By starting early, you have more time to ensure the right people are on board.

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Clearly Identify Roles, Duties, and Vision

One of the major challenges in succession planning is knowing and clearly communicating what roles and duties need to be fulfilled and how they will help steer the company into the future. If you started the business, you and your partners might know these things inherently. But when it’s time to bring new blood into the fold, you need to flex your leadership communication skills to get everyone on the same page. You might start including potential candidates in more closed-door meetings to help them gain insight into the company’s operations, for instance.

Consider the Plan When Hiring

If you already have a solid team, you’ll have an easier time finding the right people to take over in your absence. However, you’ll likely have to hire some new faces every now and then. With a solid succession planning model, you can hire new recruits with this template in mind. In other words, you’ll be able to hone in on specific traits and leadership qualities present in high-quality employees. Your succession plan should inform every hiring decision you make so you don’t waste any time finding and training the best people for the role.

When your business is growing, the last thing you might think about is leaving. However, failing to consider an exit strategy is a mistake that may cost the legacy of your organization. With proper succession planning, you can develop leaders within the enterprise and ensure the continued development of your business.At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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Having Tough Conversations with Dignity

By Leadership Resources 04/11/2019
Leadership Resources two men having a hard conversation

Your people are your greatest assets, but they’re also human beings with various ambitions, views, and flaws. If you’re in charge of a team, you have to focus much of your energy on communication and performance management. Proper communication with each individual and the team as a whole will help keep everyone on track and mitigate any growing issues or concerns.

This is easier said than done, of course. When something goes wrong, a tough conversation may be in order. And if you’re the team leader, the impetus is on you to conduct these tough conversations with dignity while still addressing the issues at hand. Let’s explore some of the ways you can navigate these interactions while also preventing them from devolving into finger-pointing or talking around the problem.

How to Have Challenging Conversations Well

Keep it Private

When a problem arises in your company, it may affect your whole team. Or, your team might have triggered the problem in the first place. Whatever the case, resist the urge to address your team as a whole right away. It’s often better to speak with individuals one-on-one to better understand the issue before bringing it up at large. If the problem seems to stem from a single person, you’ll want to begin by speaking with that person first, of course.

Private discussions are free from distractions and eliminate the potential to lean on or blame anyone else. This gives you the opportunity to better understand where the other party is coming from. Holding conversations in private can also help the other party feel more comfortable, as they won’t feel singled out in front of the rest of the team.

Be as Clear and Honest as Possible

Good leadership communication is all about clarity. The more transparent you are, the better the conversation will go. What does this transparency look like in action? It means addressing the issue head-on, clearly explaining why it matters, and genuinely expressing your desire to make things better as a team. The more sincerity you show, the more sincerity you’ll receive. A workplace culture built on this trust is bound to be more successful.

Don’t Make it Personal

Just because you’re speaking with a staff member one-on-one doesn’t mean the conversation has to get personal. Instead, the talk should focus on the problem itself. Even if the individual contributed to the problem in question, merely placing blame is not an effective way to course-correct. You should try to uncover the full context of the issue and discuss ways to make future improvements. We all make mistakes, and sometimes underlying circumstances play a part. If you’re not willing to dig deeper into all relevant factors, the same mistakes will rear their heads again.

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Let the Other Party Speak

Tough conversations cannot be one-sided. Yes, you’re the one initiating the discussion, but you must also let the other party speak and ask questions if anything is to get fixed. Be sure to ask them questions as well. If you don’t open a dialogue you won’t know how to manage your team effectively in the future. Of course, the individual might start placing blame on others, avoiding the problem, or responding emotionally. If this occurs, continue listening, but try to bring the conversation back to the issue, not the person.

Forge a Path Forward Together

The goal of any tough conversation is to amend a problem, making things better moving forward. This can only be done through team effort. Make sure that you end every difficult discussion with a purpose. Work with the individual to create strategies and solutions that will benefit them, the team, and the company. Dignity requires autonomy and self-respect, so you should empower your employees to do better in the future, helping them along the way with mindful team management.

Tough conversations are by definition never easy. They can, however, be productive and cathartic, as long as they’re conducted with dignity. With proper leadership communication training, you can get better at having these conversations. The better you get at this, the stronger your team and your business will be. Leadership Resources offers courses and resources for improving your communication and team management skills.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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Criticizing Your Team Without Demeaning Them

By Leadership Resources 04/09/2019
Leadership Resources critical group discussion

Most of us don’t like receiving criticism. But when we look back on our lives, we often find that our most significant moments of growth were driven by feedback and advice from others. We’ve already discussed the problems with being your own coach. Indeed, sometimes we need an external push to point us in the right direction. If you’re in charge of team management, part of your job is to evaluate its performance and dole out criticism that can help get everyone back on track.

Mastering this communication and performance management is easier said than done, however. On one hand, you don’t want to water down your comments or avoid confronting imminent issues. On the other hand, you don’t want to make your team uncomfortable by singling out members or acting rudely. There is an area between these poles that allows you to criticize your team without demeaning them. Let’s explore this area, how to find it, and how to navigate it properly.

How to Properly Criticize Your Employees

Deconstructing Constructive Criticism

Most of us have heard the term “constructive criticism” before. In fact, it’s one of those terms that loses its meaning after a while due to how frequently it’s used. Still, this is a relevant concept that’s worth truly understanding, as it defines the area between weak feedback and bullying mentioned above.

Constructive criticism isn’t necessarily easy to swallow or even “nice.” Rather, it’s honest feedback given in good faith designed to improve the organization. The feedback given must have the ultimate purpose of improving the individual, team, and/or behavior moving forward. Without this aim in mind, criticism lacks initiative, and may even be given in bad faith. This is why leadership communication is so vital when delivering feedback. If you fail to clearly communicate why a problem needs fixing and how it might be fixed, you’re likely to encounter the problem again.

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The Lame Blame Game

Anyone who grew up with siblings has probably partaken in the blame game before, whether that blame was warranted or not. It’s true that we’re responsible for our own actions, and when we make mistakes it’s best to own up to them as soon as possible. However, playing the blame game is not an effective way to manage your team.

When someone makes a mistake, it affects the whole team. Even if a single person made an error, this mistake serves as a learning opportunity for everyone including that individual, of course. The key here is that the problem gets addressed, not that the individual gets singled out. If you do point the finger, plenty of new issues can arise. For one thing, the finger may get pointed back at you or other team members, quickly creating fissures in the company culture. Also, blaming an individual in front of the team can make that person feel ostracized, which may decrease their productivity and willingness to work.

Some mistakes are more serious than others, of course. If a team member does something hurtful, dangerous, disingenuous, or illegal, you will have to address this person directly. However, it’s often best to have a one-on-one conversation with said person rather than single them out in the group.

Reiterate Unity and Vision

Ultimately, the best way to criticize your team without demeaning them is to frequently remind everyone of their shared purpose. You and your team are in this together. There are bound to be mistakes along the way, and they all must be addressed. But it all must come back to the unified vision so every team member can regroup and get back out there better than before. It isn’t personal.

If you’re still new to leading a team, it’s worthwhile to invest in any available communication training for managers. These programs will help you become a better leader, listener, and bearer of constructive criticism. If you want to learn more about how to manage your team effectively, look no further than Leadership Resources.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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3 Innovative Ways Your Team Can Test a New Product Idea

By Leadership Resources 03/11/2019
lightbulb

If you’re in the business of developing new products, it’s not always easy to know if an idea will be a winner. In fact, you can’t really know if a new product will sell until it’s out in the market and the numbers start rolling in. This is why it’s so important to thoroughly test an idea before sending it out into the world for public consumption. After all, you wouldn’t drive or walk across a bridge that hadn’t been stress tested beforehand.

But how exactly should you go about testing an idea? Let’s look at 3 innovative ways you and your team can test a new product idea.

How to Test a Product Idea

1. Ask Your Team: What Problem is Being Solved?

A successful product tends to solve a common problem, no matter how small. Therefore, this should be the starting point of your discussion with your project management team. Hold a brainstorming session where each team member individually writes down what problem they think the product will solve. Then, discuss each team member’s answers to see if there are any glaring differences. If one or more team members can’t come up with an answer, there may be a problem with the product idea itself.

Running this team management exercise will help foster a productive discussion that can help hone in on the product’s main function and trim its fat. A product may, in fact, be useful for solving multiple problems. But it’s important to know this beforehand so the marketing team can craft a strategy that touches on all of these aspects.

2. Hire a Focus Group

Ultimately, you want your product to appeal to a wide group of people once it’s on the market. Holding several meetings with your team is great for cultivating a team culture, but it’s not enough to get a sense of how consumers will feel about your product. Hiring a focus group can be a powerful way to get objective, external feedback on your new product idea.

Focus groups come in all shapes and sizes. They might be made up of a random selection of people, or they might be a more targeted group based on the product’s ideal market demographic. Those in the group can learn about the product, test it out, and give direct feedback to a moderator. Participants are also often encouraged to speak with one another about their experience. These conversations can reveal powerful insights into a product’s shortcomings and strong points.

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3. Test it in the Field

Focus groups provide one way to let several people try out your new product idea in a controlled setting. But why not also take your product out of the office and out into the world? Nothing is stopping you from going up to people and asking them if they’d like to try a sample of something or play around with a product for a little bit. You can even incentivize them with discounts or other offers. This is also a good exercise in sales leadership training.

If a product hasn’t been built yet and is still in the design phase, you can still test the idea by asking people if they would be interested in such a product. If enough people show interest, it’s a good indicator that the idea has value. You might then move forward with an online presale campaign that allows consumers to invest in the idea and receive the product once completed.

If you’re not around enough people to test out your product or answer your questions, try calling and emailing potential leads, asking them if they would be interested in receiving a product from you free of charge. In exchange, you can ask them to send back their thoughts on the product. Combining this feedback with your focus group results will give you the optimal pool of data to improve or change your product idea.

New product ideas are improved over time with the help of many people, both internally and externally. A large part of leadership development is understanding the importance of this additional input. Even if you’re in charge of overseeing the new product idea, it takes more than one person to bring that idea to its fullest potential.

At Leadership Resources, our purpose is making the impossible possible through people. We aim to do so by helping individuals develop patterns of success that will decrease stress levels and maximize productivity. Contact us here to learn more about what we do and how it can help your business succeed and grow.

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It's Not the Money: Why Compensation Models Have Limits in Motivating Workers

By Leadership Resources 09/26/2018

Everyone wants to earn more. No surprise there. Money can certainly incentivize employees to work harder, seek promotions, and clinch more commission-based sales. However, compensation has its limitations when it comes to how managers motivate employees. Why is this? And what else can managers do to encourage hard work and participation?

Why More Money Loses its Appeal

One might feel extremely motivated when first getting a promotion or a new higher-paying job. Over time, however, things change. It doesn’t take long for most people to begin getting used to their new wage or salary. Once a huge perk, this pay raise becomes normal and perhaps feels as restrictive as a previously lower pay rate. In this scenario, the worker might attempt to earn another raise by working harder – but even then the cycle tends to repeat. Eventually, money becomes secondary to a worker’s overall happiness and sense of meaning in the workplace.

If you’re a manager in charge of employee productivity management, this should raise alarm bells. But if more money doesn’t equate to more productivity, what does?

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Reward Systems in the Brain

The human brain is wired with reward systems. These systems help humans learn, interact with others, and behave in certain ways. Money certainly ties in to these reward systems. The human brain lights up when receiving rewards with perceived value (such as cash, gift cards, rare items, etc.). But money alone doesn’t trigger this response. Something as simple as receiving a compliment or affirmation can yield similar results. Hearing a “Good job,” or “I appreciate you” can go a long way in motivating employees. In this way, creating a positive work environment might be one of the best employee management tools available.

Finding Meaning in Work

Cash and kind gestures feed the brain’s reward system to a certain extent, but humans also want meaning in their lives. Since so many people spend the majority of their time at work, they often seek meaning there. If they can’t find it there, they’ll look to their family, friends, hobbies, or other interests. Meaning can be found in any and all of these places. Still, work can begin to feel like a drag if an employee lacks a sense of purpose in the office or at the job site.

A good employee management system should incorporate information on every employee’s interests, goals, preferences, and unique abilities. This way managers can get to know their people more personally and better find ways to make their work more meaningful, even if it’s just a small way. This might mean creating events for employees with shared interests, asking employees for feedback on how certain tasks get accomplished, or simply utilizing each person’s unique capabilities in the workplace if applicable.

People want to do a good job, but more than that, they want to be recognized for their hard work and feel their work is purposeful. Financial compensation can and should reflect an employee’s value to a company, but without the sense of meaning and gratitude behind it, the money will feel cold and worthless. Managers tasked with overseeing performance management should know that employees will feel more motivated when they feel valued as people.

Leadership Resources focuses on people and how a single person can make a massive difference in the workplace and the world. We offer videos, worksheets, and more to help develop powerful leadership skills and patterns of success that will decrease stress levels and maximize productivity. For more information and resources, contact us here!

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Investing in Personal Development: In a Workplace of Constant Change, Personal Leadership Growth Is a New Basic Skill

By Leadership Resources 09/26/2018

We live in a time of unprecedented technological advancement. Massive strides in automation, artificial intelligence, and communication have caused turbulence in almost every sphere of work. For businesses undergoing these changes, owners and managers must find ways to adapt their behaviors, hiring practices, and sales models.

Individuals must adapt as well. In a workplace that’s constantly changing, personal development should become the focus. Likewise, continued business development hinges on fostering this leadership growth.

Personal Leadership Growth is a Business Growth Strategy

A business is only as strong as its people. If sales are down, it may or may not be the fault of your staff. However, sales will only improve if you and your people actively work together to solve the problem. Staring at the sales growth formula simply isn’t enough. In other words, the better your people do, the better your business does – and vice versa.

To cultivate this business development, current leaders must encourage the personal development and leadership skills of other members. When a company is filled with self-motivated, team-oriented people, it will continue to thrive. Plus, this personal development branches out exponentially. As new leaders emerge, more resources are available to bring others up with them.

The more empowered your people are, the better they’ll be able to adapt to new challenges. If you lose sales, or a model is forced to change due to regulations or technology, you and your leaders will be equipped to find creative solutions moving forward.

Personal Development: Areas of Focus

Personal leadership development takes time, but there are some areas you can focus on to prepare your employees for whatever changes lie ahead.

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Communication

The most common cause of error is improper communication. Paradoxically, there are so many avenues of communication available today (text, email, phone, instant messaging, video chat, etc.) that some people lose focus regarding what’s on their plate and how to express it most efficiently. Other staff members might not feel empowered to speak their mind and end up keeping feedback, ideas, or questions to themselves.

By focusing on effective leadership communication skills, every team member can learn how to effectively relay information to other workers, clients, and partners, and ask crucial questions. An open door of communication will build an atmosphere of trust in the workplace. A major part of communication is listening. The best leaders don’t only express themselves well, they listen well, too.

Working Together

Personal development doesn’t mean others are excluded. A huge part of personal development involves working with others. Collaboration often yields better results than one mind working alone. Teamwork depends on proper communication, so this aspect of leadership growth hinges on the previous one. Good leaders don’t micromanage, they work with their team members to solve problems.

Willingness to Learn

No one has it all figured out, especially in a workplace that changes all the time. Great leaders know that they don’t know everything, but want to continue learning and growing. In other words, personal development never ends. Even if you’ve risen to become a major leader at your business, there’s always more to learn. Your openness to learning should also lead you to teach others as they embark on their personal development journey.

For a business to grow and change, it needs its people to grow and change as well. When individuals learn and grow, they develop into leaders who can take on tomorrow’s uncertainties. Leadership Resources understands how crucial personal development is to building the future. We provide individuals with the tools they need to continue their leadership growth process and develop patterns of success that will decrease stress levels and maximize productivity. For more information and solutions, contact us here today!

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